US crude oil exports to China reached above 550,000 bpd in May, with loading activity staying robust through July. This represents a massive increase from 183,000 bpd in May 2019 and 134,000 bpd in June 2019. A collapse in oil prices in April and declining tanker freight rates encouraged Chinese importers to go into a buying spree. The surge in oil inflows in China also caused severe congestion at ports where tankers are waiting in a long queue to discharge their loads.
On the other hand, US crude oil exports to South Korea declined slightly to around to 200,000 bpd in May as some refineries were under maintenance amid demand destruction caused by the coronavirus pandemic. The US has been South Korea’s fourth-largest oil supplier so far in 2020, behind Saudi Arabia, Kuwait, and Russia.
US crude oil exports to India rose quickly in May after dropping significantly in the previous month due to the coronavirus pandemic. India has largely been dependent on crude supply from OPEC producers. However, it began ramping up imports of US crude in June, with WTI crude contributing to more than 10% of India’s total processing.
